Standard & Poor's Ratings Services upgraded its outlook on high-end department store retailer Saks Inc. to stable from negative Monday, based on the retailer's improved cash position.
S&P said the company's margins are recovering somewhat due to lower inventory levels, though sales trends in luxury retailing remain weak.
S&P reaffirmed all other ratings on the department store operator, including a corporate credit rating of 'B-' that is six notches into junk territory.
The luxury retailer, based in New York, runs stores under its Saks Fifth Avenue and Off 5th brands selling clothes, shoes, cosmetics and other items.
Shares of Saks fell 42 cents, or 6.4 percent, to close at $6.11 on Monday.